Consumption Economics: The New Rules of Tech

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Consumption Economics: The New Rules of Tech

If youâ€™re a tech company, the most dramatic effect of megatrends like cloud computing, managed services, and the rise of consumer technology wonâ€™t be felt in your companyâ€™s product line. The true disruption will be to your business model. Future customers wonâ€™t want to pay you high prices out of big â€œCapExâ€ budgets anymore. They will expect lower â€œcloudâ€ prices paid from â€œOpExâ€ budgets only when and if they successfully consume the business value of your products. How your company reacts to this risk shift could either accelerate the commoditization of your products or lead you to a new stage of profitable growth. For the first time, the tools are on the table to truly eliminate barriers of cost and complexity created by the last generation of tech. Consumption Economics is the ownerâ€™s manual for tech company executives who want to drive their company successfully into the next one.

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